Maotai in Shanghai Costco attracted long queues
September 15th, 2019
Five years after launching an online store in the Chinese market, Costco the American wholesaler finally opened its first brick-and-mortar store in Shanghai on 27 August.
Discounts at Costco were huge. Of particular focus were Guizhou Maotai liquor and Hermes’ Birkin bags. At the retail price, Moutai liquor is sold at 2500RMB, while Costco offers it at 1499RMB.
When Costco ran out of Maotai liquor inventory, it experienced a huge wave of membership cancellation. When 10,000 bottles or Maotai were back in store for sale, queues began to form. On average, one had to queue for 2 hours outside the store to get in and spend another 3-4 in-store to complete the purchase.
In response to the Maotai craze in Shanghai, a spokesperson from the liquor manufacturer said Costco’s membership-only business model was what appealed to them, as it prevented the reselling of Maotai at high prices in China.